Leerink Partners Remains Bullish as Fate Therapeutics (FATE) Plans to Initiate ProTmune Study

Leerink Partners maintained an Outperform rating on Fate Therapeutics (NASDAQ: FATE), and cut the price target to $4.00 (from $8.00), following the company's 4Q earnings report. FATE's reported EPS of ($0.26) was slightly better than estimate' of ($0.28). The company also announced that it anticipates initiating the Phase I/II study of ProTmune in mid-2016 with preliminary data expected at the American Society of Hematology (ASH) annual meeting in Dec. 2016.

Analyst Paul Matteis commented, "Yesterday after the close, FATE announced 4Q15 results and set expectations for the Phase I/II ProTmune study with preliminary data expected by Dec. 2016. 4Q15 EPS of ($0.26) was slightly better than our estimate of ($0.28). We are updating our model to reflect 4Q15 results and are removing ProHema from our model (deprioritized in favor of ProTmune), which on balance adjusts our PT to $4 (from $8). FATE anticipates initiating the Phase I/II study of ProTmune in mid-2016 with preliminary data expected at the American Society of Hematology (ASH) annual meeting in Dec. 2016. The company has sufficient cash until early 2017, which may also be enough to complete the Phase I/II study depending on both recruitment rates and whether it gets any milestone payments from JUNO (OP). Reiterate OP on FATE."

For an analyst ratings summary and ratings history on Fate Therapeutics click here. For more ratings news on Fate Therapeutics click here.

Shares of Fate Therapeutics closed at $1.83 yesterday.

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